David Cameron gives Ed Miliband tax lesson at party conference

Ed Miliband has been given a lesson in economics as the prime minister sought to defend tax breaks for millionaires.

David Cameron delivers his speech to delegates on the last day of the Conservative party conference (Picture: Getty)

The Labour leader has claimed that cutting the top rate of tax would give a ‘£40,000 cheque’ to the wealthiest.

But David Cameron chided: ‘Ed let me explain how it works. When people earn money, it’s their money. Not the government’s money: their money.

‘Then the government takes some of it away in tax. So if we cut taxes, we’re not giving them money – we’re taking less of it away. OK?’

Turning on Mr Miliband’s claims to be the ‘One Nation’ party, Mr Cameron said: ‘Labour are the party of one notion: borrowing. Whatever the day, whatever the question, whatever the weather it’s: borrow more money.’

Labour MP Michael Dugher said Mr Cameron should have mentioned police cuts and why borrowing is rising rather than defending the tax cut.

He said: ‘This was a defensive speech, from an out of touch, clearly rattled leader.’

Cameron embraces his wife Samantha after his speech (Picture: Getty)

Unison general secretary Dave Prentis said: ‘He blamed everyone but himself and the failed no-hope austerity agenda that is dragging this country down.’

But Cameron’s supporters hailed the ‘aspiration for a nation’ rallying call as a serious speech for serious times.

Tory grandee Ken Clarke said: ‘It had all the nice personal touches, it had some applause lines, no populist claptrap.’